Economic ties between Korea and China strengthened greatly in the 1990s as the two countries became important trade partners to each other. Korea's FDI into China is thought to have contributed greatly to this process. The purpose of this paper is to identify the current status of Korean overseas investment in China and to analyze som important factors. Through such analyses, some useful strategies and devices are offered for Korean companies hoping to enter China's domestic market. The structure of this paper is as follows. Section II introduces the basic facts regarding Korean FDI into China, including its characteristics and pattern. Section III verifies empirically the business performance and motivation of Korea's FDI. Section IV estimates the problem of Korean overseas investment in China. Section V summarizes the results of the previous sections and suggests the political implications.